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World Business Today

News/Business. Colleen McEdwards, Pauline Chiou. The day's global business news with a focus on international business and market trends. New.

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Greece 15, Us 12, U.s. 9, Brussels 7, Nasa 6, Asia 4, Cnn 4, Washington 4, Jim 3, Stevie 3, Jim Boulden 3, London 3, Florida 3, France 3, Europe 2, United States 2, Gartner 2, Angela Merkel 2, Stephanie 2, Alison Kosik 2,
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  CNN    World Business Today    News/Business. Colleen McEdwards, Pauline Chiou. The day's  
   global business news with a focus on international business...  

    July 21, 2011
    4:00 - 5:00am EDT  

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hello. i'm mow neelt to rajpal from cnn london. here are the headlines at this hour. e.u. leaders are under pressure to finalize a second bailout for greece and keep the debt crisis from spreading to other economies. france and germany have reached an agreement on terms of a deal which they will be presentinglating today. the united nations has declared a famine in parts of somalia. nearly 4 million people, half of the population, are affected by the crisis, by drought, poverty and violence. half of the camps are fled to ethiopia and kenya. a man who was accused of strangling a woman, has been sent to prison. her killer went to extraordinary
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lengths to avoid arrest for more than two years, altering his face through cosmetic surgery. the space shuttle "atlantis" is about two hours from landing at the kennedy space station. the crew will fire the engines to re-enter the atmosphere and end america's 30-year shuttle program. those are the headlines from cnn. i'm monita rajpal. "world business today" starts right now. >> a warm welcome to "world business today." >> these are the top stories on thursday, july 21st. nickly sarkozy and angela merkel see eye-to-eye ahead of debt
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crisis talks in europe. >> the same can't be said in the united states, where legislators are considering a short-term fix to the borrowing limit debacle. and for all the talk of tablets, don't write off the p.c. just yet. we'll talk to intel on how it's bucking the trends in the tech sector. first, leaders of the euro are racing against the clock to talk about the economies. this as an emergency summit gets under way in brussels today. there's two, pressing issues to be resolved here. one, the terms of a second bailout package for greece and also a way to keep the crisis contained to prevent it from spilling over to larger e.u. economies, such as spain and italy. there has been a hint of progress overnight. france and germany have reached an agreement on how to deal with greece. the details of the plan are
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sketchy so far. but nichololas sarkozy and ange merkel will be presenting it to the e.u. today. jim, it looks like we've made headway when it comes to greece. but the deals of this proposal are complicated. tell us about them. >> i wish i could tell you what the grand agreement was that was reached in berlin last night. we don't really know. but there's a number of ways that europe has been looking at to solve the greece problem. they need a second bailout plan. but how do they involve bondholders of the original plan? how do they involve banks? will they tax money in europe. lowering the greece interest rate, as well. they're trying to get around the world default. they want to help greece pay less money, but not have the rating agencies see them in default. that's why we have the meeting in brussels to see if everyone can agree to whatever it is that
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mr. sarkozy and chancellor merkel reached last night. >> sounds like extraordinary window dressing there to me, jim. we should talk about the pressures that the international monetary fund and also that the united states has been putting on europe to get this sorted out. even the u.k. chancellor has weighed into the debate today, saying get a grip own europe's finances. >> i think it's rich for the americans to be telling europe to sort out its debt problem, don't you? they need to worry about their own debt problem for now. the countries inside the european union but not in the euro can look from the outside. it's a highly political decision. that is why the euro was created. politicians have to agree on how to deal with this to satisfy the voters at home. and also satisfy the european central bank. the outgoing head of the e.c.b.
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was observing the meeting in berlin. they discussed it with him. it doesn't sound like he agreed to what they agreed to. the new head of the ifm will be here. she's gone from being the finance minister to being inside the meeting, to the imf, who gives a lot of money to greece. gave a lot of money to ireland. her voice is strong. but she has a different roll. it will be fascinating to see how much involvement she'll have today. >> it will be fascinating to see whether she can draw consensus. that's also the reason she was picked for that top job. j jim boulden. thanks for joining us. looking to sort it out. the u.s. has its own problems. the debt talks are conditioning. and the white house said on wednesday, it is open to a possible short-term increase in u.s. debt ceiling to allow for a
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few more days of negotiation over a broader plan. the president is pushing for a grand bargain but would agree to a smaller increase, as long as negotiations show promise. this comes a day after a bipartisan group of senators, the so-called gang of six, introduced their own plan. but a major impasse remains in the house of representatives, where republicans are simply unwilling to compromise. >> outsiders look at this process and say this is typical washington mess. it always works out in the end. when you talk to old hands in washington who have been at this demeanor decades, they say this is abnormal washington messiness. you have dead-enders. and the new freshmen don't care about re-election. and you can't sweeten the deal or bargain with them to get their votes because they just want to cut spending. you don't know how this works out in the end.
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that's why this negotiation is so messy. the president wants to boost revenues by closing loopholes that wellny citizens and companies have used to reduce taxes. according to the white house's own numbers, ending the corporate jet perk, for example, would raise only $3 billion. ending tax breaks for oil companies would bring in $4 billion. and raising the tax rate on hedge fund earnings would net an additional $20 billion. in short, closing the $1.4 trillion deficit is going to require much more than just taxing the wealthy. nina? >> yeah. everybody's trying to reduce their debt piles, aren't they? what about a possible deal to bailout greece again, for a second time, produced caution optimism in europe. the third-straight day of gains. as you can see, the results are decidedly mixed about an hour
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into the trading session. these markets, at least the ones started down a positive note, are slipping to a tune of 0.3%. >> i remember, earlier in the week one of our guests saying she was expecting fireworks today. but there was no clear direction for markets in asia. uncertainly before that e.u. debt meeting. keeping investors from taking too many risks. new figures on chinese manufacturing have added to the drag on this region. a key survey shows that manufacturing fell to a 28-month low. it's the latest sign that money tightening measures are impacting on the economy. weighing in on hynix. they fell 2% in seoul. a 32% in second-quarter profit. that's the result of slowing p.c. sales that's driving down chip prices. we will be looking ahead. hopefully things will look good in the u.s. later on.
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>> yeah. let's take a look at on wall street. stocks ending the day lower on wednesday's session. this was considering lingered about the debt issue and the debt ceiling deadlock we were telling you about on the other side of the atlantic. on the close of trade, the dow jones industrial average and the s&p 500, both off about 0.10%. and the nasdaq feel 0.5%. today's session, this is where the premarket action futures show us. nasdaq still poised to open just a tad in the red. basically flat. down 0.03% right now. the other markets in terms of fuchers raising about 0.2% in total. >> no one's making a play until we have more concrete news on the debt situations. here are some other top business stories we're following this hour.
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"the guardian" says james murdoch appears to have given misleading testimony to a parliamentary committee on tuesday. murdoch testified that a victim of his company's phone hacking was given about $400,000 in a secret settlement. but the paper says the payment was nearly $700,000. the total paid to keep the case out of court was $1.6 million. wells fargo has been hit with a regard $85 million fine. the federal reserve says the bank pushed home buyers into expensive, risky mortgages and falsified loan applications. in agreeing to pay the fine, wells fargo did not admit wrongdoing. japan's economy is recovering from the earthquake and tsunami that hit in march. a trade surface of nearly $1 ear that japan had its
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second-greatest trade deficit ever. as sales on devices like the ipad soar, there's been increasing speculation that the age of the p.c. or personal computer may soon be over. no one has told the chipmaker, intel, that, which is celebrating its record earnings today. we'll have that and more on today's show.
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a warm welcome back to "world business today." >> it seems that the chips are up at intel. the world's largest chipmaker have posted their best-ever quarter. for the first time passed $13 billion. quarterly profits were up 2% to $3 billion, compared to the same period last near. intel credits a surge in mobile devices and data centers using its technology. despite the dollar earnings,
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shares of intel ended the day pretty flat. just 0.3% lower. for the most part, over the past six months, intel's strong earnings have sent its stock generally speaking quite a bit higher. it's time to focus what the story of success was for this company and what's accounting for these record figures. let's find out the answer to that question. we're joined by christian borales. thank you for coming on the show. the figures are records for you. but let's spin things forward. things are changing in the personal computer space. let me read you an analyst's question for you, let's say. the primary question many investors are going to be asking is where is intel seeing the fundamental strength in the p.c. market? how would you answer that question? >> first of all, if we look at the last updates from the market survey companies, they have
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given a high growth for this year. they are expected a double-digit growth for this year. this segment is growing well. it's a 400 million units kind of category. pretty significant. we see this keeping on growing. what we also see growing strong is data center activity. you need infrastructure to support the internet economy. we've seen stronger growth from last year to this year on this segment. >> on that government report you're talking about. you're talking about a 1% growth for the p.c. market. then again, you're targeting growth that's higher than that. >> that's right. we did grow 21% from last year to this year. and we are giving an outlook to $14 billion to the third quarter, which shows another growth. and this is based, again on the growth from the p.c. market. but more than this, a strong
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growth of data centers. and interestingly enough, we are also seeing other segments that are growing pretty well, like the embedded segment, where a lot of the atom architectural processors are being shipped. >> let's talk about data storage. the cloud. how will that affect intel's earning. >> the cloud is growing at rates of 50%. we see more and more applications going into the cloud. hosted by companies or in different data centers around the world. we see a lot of buildup of new international data centers. and there, we have smart performance. we have great connectivity. we have great security. and we also have great storage, which is needed to support it. >> i can't let you go, christian morales, without asking you about tablets versus p.c. the market is moving towards tablets. how can you keep delivering 7% growth every year, every quarter, if people are moving to
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tablets? >> tablets right now represent about 10% of the volumes on p.c. and we are in those tablets. we're starting those tablets. we have good devices in the marketplace. more are coming out. also, we're getting a good acceptance from next generation devices, the books that we announced a couple of months ago. and those will be introduced in the marketplace by the end of the third quarter, with a lot of -- and we're seeing those devices would be an uncompromised experience, that is brought to users. and it will ignite the p.c. category in the next generation of devices. >> we have only got a couple of seconds here, christian. do you see intel being a completely tablet-type product, with your chips being tablet-type chips 20 years from now. no p.c.s? yes or no? >> no.
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>> that's definite. christian morales, the vice president of intel's operations. >> that was fascinating stuff. you know, touching on the cloud stuff, as well. we'll get back to that later in the show. it's an amazingly, an area i'm curious about. the chinese computermaker lenovo is leaping into the tablet market with three new devices. and that news comes after apple said this week its third-quarter earnings doubled from a year earlier, thanks in part to its ipad sales. we have the details on lenovo's tablet trio. they're throwing it at us. >> if you go to lenovo's u.s. website, they're pushing their tablets. the three new ones are each aimed at a different segment. in one, the k-1, is for the consumer. they say. the p-1, for the home and office.
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and the think pad is for the business owner. the question techies are wondering is how do they stack up against this, the ipad 2? this is considered the gold standard for tablets right now. and they have similar screen sizes from 9.7 inches to 10.1 inches here. they have cameras on the front, as well as on the back. and their processing power and connectivity are similar, too. they have wi-fi and 3g. and they're priced competitively. these lenovo tablets will run adobe flash for video playback. and their operating systems will not be apple e.s. they will use microsoft windows 7 right here. the k-1 and the think pad will run on android 3.1, still named the honey comb. >> you have apple. you have the windows option. and you have android. but there's been a tussle,
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hasn't there? where is the competition headed as far as the operating systems go, as these tablets and more of them come to market? >> since apple launched its first ipad, which was last year in april, it has become the world's dominant tablet player. and it will continue to be. but only for the next four years. that's according to gartner, a u.s.-based tech research firm. and gartner says apple had an 84% market share in global tablets in 2010. but it says that will fall over the next few years. in 2012, for example, gartner says apple's global market share could drop to under 64%. but it will be in 2015 that apple may lose its dominance in the market, going under 50%, to just about 47% of the global sales. as for android, the story is the opposite. look at these numbers here. in 2010, we saw that android only had a global market share in tablets of just about 14%.
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but in 2012, that's estimated to go up to about 25%. and in 2015, it gets high. almost 40%. taking a bigger chunk out of apple's market share each year. brands that run the android operating system, the think pad. as well as motorola's zoom. if you're more of a blackberry fan, gartner says the operating system in blackberries may have 10% of the global market by 2015. as of last year, it was next to nothing. >> okay, thank you for that. i guess the key will be, can all of your devices speak to one another? we're going to speak later about that in the show. we look at cloud computing. we're also going to look at how cloud computing could save companies on their bottom line. >> it was interesting, wasn't it? to hear christian morales from
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intel saying that the p.c. would live on. and come 20 years from now, it would all be about tablets. up next, storms in europe continue to affect travel plans. we'll have the forecast. and also, a shuttle swan song as "atlantis" heads home, finally. that's ahead on the show. stay with us.
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hello again. this is "world business today." we're live on cnn. >> to the weather now. and thursday will bring a rare
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round of severe storms through some parts of europe. meteorologist jennifer delgado is standing by with your business travelers forecast. good morning, jen. i take it you're watching some of the problem spots right now. where are they? >> we have two problem spots. one in western europe. but the one towards eastern europe will be firing up the activity later in the day. you look at the radar right now. blue and red being reflected in areas of germany and poland. this means another cool as well as rainy day for parts of western europe. it's really going to be the east that we're watching for areas, including romania, bulgaria, anywhere near the black sea. approaching the cold front of the moisture coming through. we're looking for potential of the storms to fire up gusty winds. can't rule out the chance for an isolated tornado or two. and very heavy rainfall. that's going to spread toward areas of portland, lithuania.
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this will last as we go through the morning hours. as we look across parts of the u.s., things are nice and quiet on the radar. i point this out to you because we're talking about space shuttle "atlantis." it will be landing in an hour. 5:56 eastern time. things have been nice and quiet. as we go through the next hour, what we're expecting is the weather to cooperate. as i show you on a graphic here, we'll be dealing with mostly clear skies across the region. winds about 5 to 15 kph. and very typical for this time of if year. our friends at gmt time, we're talking 09:57. tune in for that. want to leave you with video from mission control. this is mission control. looks quiet there. people hanging out in their control room. about as exciting as our control room at times. things will be getting more
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exciting as we go through the next couple minutes. we'll have more "world business today." stay with us.
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from cnn london, i'm nina dos santos. >> welcome back to "world business today." let's get straight to the markets. just give you a snapshot of how things look. it was a weak session in asia. but there is optimism, merging france and germany. reaching a second bailout for greece. all eyes on that. >> absolutely. it's a pivotal day for the
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markets and for positions in brussels, as well. angela merkel and the french president, nicolas sarkozy will provide details of this agreement. the agreement that's been proposed between the two. an emergency summit in brussels today. as we speak, in fact. leaders of the 17 euro nations will be there. as does our jim boulden who joins us live from the belgium capital. these negotiations seem complicated. one thing the markets want to know. either way it goes, will it be enough that the euro zone has? >> yeah because we're talking about two, different issues. of course, they're closely related. but there's the bailout for greece. the second bailout. that will be something like another $150 billion. that seems to be a consensus that has to happen, obviously. so greece can pay its bills through 2014. then, you have the larger issue of this contagion worries.
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if you don't sort out all of the worries about the euro, you will have the run on yields in italy like we saw late last week. that's calms down a little bit. there is a feeling that we have to have the big bang here in brussels. europe has to speak with one voice. they have to come up with a grand plan. even if it's not today. but they have to have steps today about, for instance, do they tax the banks here in europe to get more money to give to greece? do they allow this efsf, the current fund that's helping to bailout greece and ireland. do they allow that to be more flexible. it's complicated. but the point is, people want to see firepower. want to see that the politicians are thing as much as they can that make sure that the euro survives. and make sure there isn't an attack on the bond markets. so, we want to see a lot of words coming out of here.
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then, see some actions. it will be really interesting. it could be all day. we could be here late into the night to see if they can have common agreement on these two very important issues. >> jim, we should talk about the banking sector and how this affects some of europe's largest banks that are heavily exposed to sovereign debt. of all of the 17 nations that share the euro. there are proposals for them to be taxed. and some of that money to go to greece to pay down outstanding debt. there's proposals to put more money aside on the balance sheets. >> yes. well, of course, we already have the bank stress tests again. we had the second ones last week. questions on how credible that was. people have different views on that. but the idea is they really should have a little extra money on the balance sheets. a little more in case of another shock. especially if we were to have a greek default. the "d" word coming back.
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but the banks have said, we're going to lend less if we do that. just at the time you need the economies to recover. according to bloomberg, some of the big bankers will be here. some of the big european banks who will be listening in to give a bit of view on that. that will be interesting if they're allowed into the party because their views might be very different than what you hear from the politicians. >> jim boulden, keep us up to date what's going on in brussels. many thanks for that report there. let's see how everything jim was telling us is affecting the markets. we're 19 minutes into the trading session. so far, it seems we started out on a weaker note. a lot of people waiting to see what happens in brussels. the only market that's up is the zurich smi. >> here in asia, the uncertainly about bad debt has kept investors from taking risks. new figures on the chinese manufacturing sector weighed on stocks in this region.
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a survey from hsbc says that money measures are affecting the economy. let's give our viewers a reminder of what happened on wall street on wednesday. investors were preoccupied by washington's stalemate when it comes to raising the borrowing limit. alison kosik joins us with details. >> investors worry that lawmakers may not have time to reach a debt deal in time. the august 2nd deadline is less than two weeks away. the dow dipped 15 points, ending at 12571. and the s&p 500 dipped a fraction. some stocks in focus wednesday. amr, the parent company of american airlines, was little changed on the heels of the carrier's massive jet order.
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but boeing gained 2%. it will make half of american airlines' new fleet. shares of zillow more than doubled from its pricing. it trades under the ticker symbol z. it closed at almost $36 a share. that gives it a market value of $1 million. home sales slipped by 0.8%. the dip marks the fourth-straight monthly decline. analysts had been expecting a 3% increase. the report attributed the results to a spike in contracts. investors will review figures on weekly jobless claims and manufacturing as well as earnings from ad ad, morgan stanley, travelers insurance and microsoft. that's a wrap of the day on wall street. i'm alison kosik in new york. looking ahead to the start
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of thursday's session, this is where u.s. futures stand in the premarket action. the major indices are looking mixed right now. no one wants to take this up before they get real news. speaking of the united states, the u.s. is streamlining its technology operations in terms of space and also costs. the obama administration announce it will be shutting down 178 computer centers as of next year. this is part of a wider plan to close 40% of its 2,000 data centers during the next four years to come. the move is expected to save the u.s. government billions of dollars. of course, as we've been saying on this show, it's spending billions of dollars. any moves like this to save some money is probably good news. >> absolutely. you know what? the u.s. is following the lead of the private sector. making this transition to cloud
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computing. that means files and applications will be accessed through internet, making storage easier for the swell of information expected. 1.8 units will be replicated this year. that's the amount of information needed to fill 57 1/2 billion apple ipads. if you lined them up, you would get an ipad wall 4,000 miles long, extending from alaska to florida in the south. that estimates that cloud computing service providers will store or process one-fifth of this information within just four years. emc is the technology firm that sponsored that study. steve leonard is the president of emc asia and japan. he's with us in the studio. i find it fascinating.
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and essentially, and you can correct me if i'm wrong, but cloud computing, when everything is in sync. it's as if all of the information is just up there. and you know, this is a big deal for business because it cuts back their costs massively. >> right. you talked about the scale of the issue. on top of what we're worrying about this year, it's going to double in size every two years. so, the problem of massive amounts of information will only become more challenging. now, the things that aren't changing the number of skilled professionals to deal with technology. the amount of floor space or power. we have to approach technology in a different way. that's where cloud computing comes in. think of it as a 747, that a company needs to ship packages on two holiday days a year. but they need a smaller plane the rest of the year. that's how companies have had to architect building technology. they had to have big scale for when they need it most.
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cloud computing allows you to use what you need when you need it. and not use what you're not needing. you don't need to pay for as much. you have flexibility. in is the attraction for cloud computing. >> a layperson looking into this. not somebody like yourself. somebody looking in and saying, every time i sync my device, i'm sending data out there. every time i download a movie. or more websites upload this stuff. there's more data out there. but it's all out there. and who can get hold of it? >> well, a couple of quick things. there's really two ways to think of the cloud. there's the private cloud, which is growing a lot. companies building their only internal architecture to cloud their i.t. to make it a public service. then, the public cloud, the googles or amazons, where the information is far away. private and public working together is where we think companies will evolve to.
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security, the authentication of both sides of the information. and encrypting information so when it is moving it's safe and secure from hack is going to be the foundation for a successful cloud computing model. you're touching on security, which is critical. and you're touching on trust, which is going to underpin everything. >> what are the risks then for businesses? security is one. but is there a point which governments get involved? and they start talking. data is a politically sensitive issue. >> already, in a big way. as i meet with different regulatory bodies, hkma, or the regulatory of singapore are concerned about what banks will be moving into the cloud. regulatory shorts want to know where it will go. who has access to it? and what happens in the meantime. companies are bushing because they need the economic benefit and the speed and responsiveness of a different business model. >> it's almost spiritual. everything is connected.
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we'll leave it there, steve. thank you very much, steve leonard, for joining us. is the end of an era for nasa. and time to launch a new career for many of those involved in the shuttle program.
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we're back. it's "world business today." american's space shuttle "atlantis" has been cleared for landing at the kennedy space center in florida. and it's been given the okay to fire its rockets and leave orbit. and it's due to touch down about an hour from now. it will end nasa's 30-year shuttle program. it will leave thousands of aerospace workers unemployed. >> reporter: stephanie estrada is lucky. she knows it. >> every, single step i've taken, it was timely. and it was the right move.
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and for some reason, it's worked out. >> reporter: stephanie is a lawyer. she wears suits. she wore them before, too. but those were called bunny suits. nasa speak for the garb you put on working on spacecraft. stephanie saw it coming. the shuttle program was ending. >> i was willing to do anything, whether it be technology-related. law-related. working at mcdonald's. i didn't care. >> reporter: while still with nasa, she went tonight school, got her law degree and left the space agency before it left her. by the time the three shuttles are sent to museums, nearly 8,000 people will have lost their jobs. >> this was given to me as a -- just a reminder from everyone. they signed it. >> reporter: bill bender already lost his. he ran the department that tracks and photographs shuttles as they lift off and land. bender thought he made a wise decision moving from shuttle to
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nasa's new constellation program. it was going to be the future. instead, constellation got deep 6s. about five months ago, bill found himself out a job. >> and i want to be part of it. but i'm beginning to come up to a point where maybe i need to let it go and look at other things and look after myself. >> reporter: it's got on the the point where bill is giving thought to a job in afghanistan, working on perimeter defense imagery. >> 30 minutes, get this hooked up. from the thing hits the ground to ready to go. >> reporter: as soon as "atlantis" lands, ray zinc will lead a convoy to prepare for its move. after that, he plans to start up an organization that brings science and engineering to kids. >> we all have a lot of experience. a lot of knowledge we would love to pass on to another generation. let's get together and find to do this. go where the kids are or bring
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them to us. >> reporter: zink has seen a lot of friends go. within 24 hours of "atlantis" landing, he will see more. 2,300 people will be leaving. the shuttle program is over. it's done. john zarrella, at the kennedy space center, florida. we're about ten seconds into the deorbit burn. >> tend of the journey that started with the testing of a craft called "enterprise," in 1977. "columbia" in 1981. culminating this morning with a night flight to the kennedy space center. >> it's been 14 days since
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"atlantis" lifted off for the final mission of the space shuttle program. this morning what we're witnessing this at the moment is the end of the mission and the end of nasa's 30-year program. you're watching live pictures of the kennedy space center where we're 12 to 13 seconds into that deorbit burn. "atlantis" is in the middle of what's called the deorbit burn. this is occurring about 60 minutes from touchdown. about 23 0 kilometers from the runway. it's firing at the spacecraft's engine against the direction of its motion. and that cuts the shuttle speed, allowing its to orbit back into the earth's atmosphere so it can actually land. we'll be continuing to bring you live pictures of the shuttle "atlantis" as its lands in a little over an hour from now. going to be going into a break. do stay with us. "world business today" continues on cnn.
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welcome back. you're watching "world business today" live from cnn, hong kong and london. let's bring you more on the space shuttle "atlantis." it's completed its deorbit burn and is heading towards planet earth for landing. the deorbit burn is what occurs about 16 ahead of touchdown, about 280 kilometers away from
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the runway. you're seeing the end of the 30-year space shuttle program. and "atlantis" has been away from earth for the past 14 days. it's now ready to land in about an hour from now. the world's former numb berp one golfer made big news when he and his wife split. now, tiger woods is back in the headlines thanks to another big breakup. woods and his long-time caddie are breaking up at this time. candy reid is joining us right now. >> for 12 years, tiger woods and steve williams formed the most successful partnership in golf. but in a relationship came to an end on wednesday. as tiger announced on his website it was time for a change. 47-year-old williams first carried woods' bag in 1999 and helped the former world number one to 17 titles overall. but tiger's game has been in decline since his private life
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has unraveled. and he's fallen to number 20 in the world rankings. despite that, williams has stuck by him through thick and thin. because of tiger's recent injury problems, the new zealander has worked with adam scott for the last two majors. tiger, who appeared in stevie's wedding and vice versa, announced it on his website. i want to express my deep et gratitude to stevie for all his held. stevie is an outstanding caddie and a friend. and has been instrumental in many of my accomplishments. i wish him success in the future. tiger seemed to implicate it was an amicable split. the post on williams' website seemed to suggest it was less so. this is what h said. after 13 years of loyal service, needless to say, this came as a shock. given the circumstances of the past 18 months, working through tiger's scandal, a new coach and with it, a major swing change and tiger battling through injuries, i'm very disappointed to end our very successful partnership at this time.
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i had the opportunity to work of late for australian adam scott. and will now caddie for him on a permanent basis. things have clearly not been right between the two. woods and williams, for a while. williams first worked with scott at the u.s. open, after flying in from new zealand to compare up with tiger. only to be told by his employer, that he, tiger, wasn't fit enough to play. and although williams asked permission first, tiger was apparently not too thrilled that williams was prepared to work with someone else. back to you. >> yeah. it's not about what you do. it's about the support network, as we know in this business. that's about it for this edition of "world business today." thanks very much for joining us. >> you're watching cnn the world's leader in news. we'll have "world one" after about an hour's time. good-bye for now.
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